Japan Govt to Help 23 Municipalities Prepare Industrial Zones

Tokyo, Aug. 29 (Jiji Press)--Japan's industry ministry has chosen 23 municipalities that it will support in preparing industrial zones, Jiji Press learned Thursday.

They include the town of Shika in the central prefecture of Ishikawa, the city of Nagano, the capital of the namesake prefecture in central Japan, the city of Sumoto, Hyogo Prefecture, western Japan, and the city of Miyawaka in the southwestern prefecture of Fukuoka, sources familiar with the issue said.

Through the Japan Industrial Location Center, which will take charge of the support program, the ministry will help the local governments reduce costs of related projects, in order to assist Japanese manufacturers' moves to bring their factories back home.

The manufacturing industry has increasingly been relocating production bases back to Japan amid the weakening of the yen and growing geopolitical risks such as the U.S.-China confrontation. However, municipalities have faced difficulties providing sufficient land for such returning companies.

The ministry will reduce by up to 3 million yen the costs of on-site surveys to be conducted by eight municipalities, including Nagano, respectively in the final stage of the process to select locations for industrial zones, according to the sources. For 15 municipalities, including the city of Toyohashi, Aichi Prefecture, central Japan, costs of accepting experts for advice to cover their lack of know-how about setting up industrial zones will be reduced by up to 700,000 yen each.

The ministry will utilize a fund at the Organization for Small & Medium Enterprises and Regional Innovation for the support scheme. It will continue the program until fiscal 2028.

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